Minister Withdraws Controversial Credit Act Amendments

Trade and Industry Minister Parks Tau has withdrawn draft regulations that could have led to the blacklisting of people with student debt.

The department had recently gazetted draft amendments to the National Credit Act of 2005 for public comment. These changes were presented as a way to strengthen consumer protections, regulate how credit bureaus manage customer information, and improve affordability assessments.

However, the proposals sparked widespread public outcry. The amendments would have given credit bureaus access to information from state organs involved in fraud investigations, as well as consumers’ criminal records.

The department received more than 20,000 submissions before the closing date, with the majority opposing the draft regulations.

Tau explained that the withdrawal was informed by the overwhelming public response. He added that while efforts will continue to improve access to finance for Small, Medium, and Micro Enterprises (SMMEs), a new process will be considered to better protect students from financial exclusion.